Calculate the NPV of given projects
Question: Calculate the NPV of given projects….
Calculate the NPV of Given projects Alpha and Beta.
Consider the following two projects:
| Project | Year 0
C/F |
Year 1
C/F |
Year 2
C/F |
Year 3
C/F |
Year 4
C/F |
Year 5
C/F |
Year 6
C/F |
Year 7
C/F |
Discount
Rate |
| Alpha | -79 | 20 | 25 | 35 | 35 | 40 | N/A | N/A | 15% |
| Beta | -80 | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 15% |
The NPV for project alpha is closest to:
- $20.21
- $16.92
- $24.01
- $14.41
